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Learning Book-to-Bill Ratio

Information from across the business spectrum has value to consultants. In a post at Consultant’s Mind, John Kim succinctly discusses a piece of information used in business-to-business marketing called the book-to-bill ratio. Basically, this ratio tells you if business is on the upswing or the downswing. It is calculated by dividing bookings/orders by billings/revenue. A ratio above 1 spells good news for the business and vice versa.

In the context of consulting, Kim says a ratio above 1 means you should keep hiring and investing. When the ratio falls above 1 is when you should take careful stock of your situation. For further thoughts, you can view Kim’s post here: http://www.consultantsmind.com/2018/01/28/book-to-bill/

About John Friscia

John Friscia is the Editor of Computer Aid's Accelerating IT Success. He began working for Computer Aid, Inc. in 2013 and continues to provide graphic design support for AITS. He graduated summa cum laude from Shippensburg University with a B.A. in English.

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